Alert over fraud as lenders prepare for extended bounceback loan scheme

Today, banks are braced for the extension of the government’s bounceback loan scheme, signalling a red alert over fraud.

The Cabinet Office recently warned that at least £1.85bn has been claimed dishonestly, with vast deliberate fraud losses yet to be uncovered.

As lenders prepare to pump out billions, pressure is mounting to ensure the right processes are in place for businesses to rightfully and efficiently access loans under the scheme, whilst working harder to detect, and prevent opportunistic financial crime.

According to Monica Spigner, VP of Business Transformation Services at Teleperformance: “Scammers and hackers have realised that more is happening on the front end of banking and are taking advantage – magnifying the importance of customer communication channels being safe and secure.”

Monica concludes: “It is well-known Covid-19 has sped up digital transformation, however financial services are far from reaching a “new normal” yet. The pandemic acted as a catalyst and forced companies to re-evaluate how they do business. Firms must start building on the lessons learned during the initial crisis if they are to survive the second wave, meaning customer experience and fraud should be working hand in hand right now for banking leaders.”